Budget 2021: Cash injection to oversee media bargaining code

The Australian Communications and Media Authority will receive more than $4m in next week’s federal budget to support the implementation and administration of the news media bargaining code.

Communications Minister Paul Fletcher. Picture: Getty Images

The Australian Communications and Media Authority will receive more than $4m in next week’s federal budget to support the implementation and administration of the Morrison government’s news media bargaining code.

The funding comes as a number of Australian media companies are finalising deals with global tech giants, including Google and Facebook, over the use of their journalism content.

Communications Minister Paul Fletcher told The Australian the $4.2m would allow ACMA to deliver the benefits ­provided by the code.

“Digital platforms have fundamentally changed the way that media content is produced, distributed and consumed, which is why the Morrison government introduced this world-leading code to support a diverse and ­sustainable Australian news media sector,” Mr Fletcher said.

“Our investment will enable ACMA to fulfil its functions under the code, including administering an eligibility scheme, registering news businesses, and maintaining a register of arbitrators.”

Under the terms of the news media bargaining code, which ­became law earlier this year, news media businesses will be remunerated for the journalism they generate that subsequently appears on digital platforms.

If they fail to pay, the likes of Google and Facebook risk being “designated” under the code and forced into final-offer arbitration, which could result in the issuing of multi-million-dollar fines.

To be eligible for compensation under the code, media companies must have annual revenue above $150,000 and be subject to professional editorial standards and ethics.

On Monday, Seven West Media announced a five-year deal with Google and a three-year agreement with Facebook.

News Corp (publisher of The Australian) is expected to provide an update on its deals with Google and Facebook in coming days.

In February, The Sydney Morning Herald reported its publisher, Nine Entertainment, had struck a deal with Google under which the tech giant would pay more than $30m in cash annually for the next five years for the use of its journalism. The Guardian has also struck a deal with Google.

On Tuesday, Australian Community Media, which has already signed an agreement with Google that will see its 40-odd newspaper titles provide its journalism to the Google News Showcase product, confirmed that it had also signed a letter of intent with Facebook.

“We welcome the reports that Google and Facebook have reached agreements with some news businesses for the use of their content, and encourage the parties to continue to negotiate in good faith,” Mr Fletcher said.

“This is powerful evidence the code is already doing its job.”

The code will be reviewed by Treasury within one year of its commencement to make sure it is delivering its intended outcomes.